HB 581 -- Quality Jobs Program

Sponsor:  Flook

This bill changes the laws regarding the Quality Jobs Program.
In its main provisions, the bill:

(1)  Increases the maximum amount of tax credits that can be
issued in a calendar year for the program from $12 million to $24
million;

(2)  Allows tax credits to offset taxes due from financial
institutions under Chapter 148, RSMo.  Currently, the credits can
only be used to offset state income taxes imposed by Chapter 143;

(3)  Changes the definition of "withholding tax" to a computation
using a schedule determined by the Department of Economic
Development based on average wages.  Currently, the definition is
the state tax imposed by Sections 143.191 - 143.265;

(4)  Allows the calendar year's maximum amount of quality jobs
tax credits issued to a qualifying company that participates in
both the Quality Jobs Program and the New Job Training Program to
be increased by an amount equivalent to the withholding tax
retained by that company under the New Job Training Program if
the combined benefits do not exceed the projected state benefits
of the project.  Currently, a qualified company is prohibited
from receiving tax credits from both programs at the same time
for the same new jobs at the project facility;

(5)  Requires that if the calendar year's annual maximum amount
of quality jobs tax credits issued to any qualified company is
increased by $1 million, the number of new jobs must exceed 500.
Currently, this increase in tax credits can occur by receiving
the approval of the department and the Quality Jobs Advisory Task
Force;

(6)  Requires the actual county average wage, not the statewide
average wage, to be used when determining if a company qualifies
for a wage bonus for meeting 120% or 140% of the county average
wage;

(7)  Specifies the method in which the county average wage will
be calculated when a qualified company relocates employees from
one county to another;

(8)  Revises the definition of "full-time employee" from an
employee who works an average of 35 hours per week to an employee
of the qualified company that is scheduled to work an average of
35 hours per week, but leaves the remaining requirements of the
definition unchanged;

(9)  Specifies that no jobs created before the notice of intent
will be deemed new jobs;

(10)  Specifies the way in which new payroll will be calculated;

(11)  Adds educational services, religious organizations, and
public administration to the list of entities which are
prohibited from being qualified companies;

(12)  Allows qualified companies to retain withholding taxes once
the minimum number of new jobs has been attained and the county
average wage has been exceeded; and

(13)  Requires the department to verify through the Department of
Revenue that the tax credit applicant does not owe any delinquent
taxes, interest, or penalties and to verify through the
Department of Insurance, Financial Institutions, and Professional
Registration that the applicant does not owe any delinquent
insurance taxes prior to issuing any tax credits.  The amount of
tax credits issued will be reduced by any tax delinquency.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:19 am